Our observations:
Financial regulators wield too much power putting tremendous pressure on centralized financial corporations under their supervision. We know of some public listed companies that actually chose to go private simply because they thought regulatory compliance is just not worth their time or money.
The question is can the financial regulators continue wielding such power when wanting to regulate centralized corporations like Binance handling decentralized businesses?
Binance has been making overtures that they intend to become a fully compliant financial company and even has been looking for a CEO who is compliance minded.
Even a compliance minded CEO may face difficulties with the requirements of financial regulators because their requirements may be suitable for centralized businesses but just too onerous for a decentralized business model and perhaps is not suitable such businesses. We are making a conjecture here because we have not actually seen the type of information asked for by the financial regulators.
Further, unlike their centralized counterparts, corporation like Binance handling decentralized business has a choice of themselves becoming decentralized and thereby avoiding regulatory scrutiny altogether. They can follow the footsteps of Shapeshift which recently announced that it is doing away with it centralized business model and is going decentralized without a CEO and staff.
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Perhaps, Binance would do the same, given the latest developments!
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